How is zakat different from a tax relief?

Tax reliefs only reduce your taxable income. Zakat reduces your actual tax payable: RM1 of zakat means RM1 less tax.

What if my zakat is more than my tax?

The zakat deduction is limited to your total tax payable. If zakat exceeds tax, the excess cannot be refunded or carried forward.

Zakat vs tax: differences and how to claim.

Understand the differences between zakat and income tax, and how zakat can significantly reduce your tax.

Calculate your tax Calculate your zakat

Religious obligation2.5%

Zakat

A religious obligation (fardhu) for eligible Muslims, paid to an approved zakat institution.

Rate

2.5%

Threshold

≈RM34,000

Religious obligation for eligible Muslims
Fixed rate of 2.5%
Deducts directly from tax payable
Based on the nisab threshold
Must be paid to approved institutions

Zakat guide

Legal obligation0–30%

Income tax

A legal obligation for all taxpayers, charged on taxable income and administered by LHDN.

Rate

0–30%

Threshold

RM37,333+

Legal obligation for all taxpayers
Progressive rates (0–30%)
Based on taxable income brackets
Administered by LHDN
Various tax reliefs available

Tax relief guide

Quick comparison

Zakat and income tax, side by side.

Zakat and income tax compared
Aspect	Zakat	Tax
Nature	Religious obligation (fardhu)	Legal obligation
Rate	2.5% of eligible wealth or income	0–30% progressive
Threshold	≈RM34,000 (gold nisab in 2026, varies by state)	RM37,333+ (after EPF)
Deduction	Deducts directly from tax	Only reduces taxable income

How does zakat reduce tax?

Ringgit for ringgit.

Example: tax before and after zakat
Item	Amount
Tax before zakat	RM5,000
Zakat paid	− RM1,500
Tax after zakat	RM3,500

You save RM1,500. Zakat reduces tax ringgit for ringgit.

Important points to remember

Before you claim zakat against tax.

Keep your receipts

Zakat must be paid to an LHDN-approved zakat institution to qualify. Keep your payment receipts as proof.

Calculate your zakat Zakat guide

RM1 of zakat paidRM1 less tax
Paid to an approved zakat institutionQualifies
Zakat is more than your tax payableExcess not refunded

Common questions

All tax FAQs

No. Zakat is a religious obligation for Muslims, while tax is a legal obligation for all taxpayers. However, zakat paid to a recognised institution can be deducted directly from the tax you owe.

Calculate your zakat and tax

CukaiMax helps you calculate both zakat and tax accurately.

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Sources: LHDN, tax reliefs and zakat rebate; LHDN, individual income tax rates; PPZ-MAIWP, nisab 2026.